I have to confess, I haven't had a lot of time to think this through all the way. I may decide to change my mind later. But the fact that Sen. Clinton is suggesting that Bush boycott the Olympics (see story here), seems like a bad idea.
Didn't we do this once before? Maybe in Summer 1980? President Carter decided to boycott the Olympics (USSR was the bad guy back then). As I recall, the ones that suffered the most were the athletes. And the farmers too. Carter announced a grain embargo on the USSR, and the price of grain bottomed out as there was more grain than could be sold.
What did we gain out of the Olympic boycott of 1980? Nothing. Embarrassment. And a lot of athletes who had worked for years only to have the gold snatched from their hands.
*Updated spelling as per offline comment*